Successful Scaling of Figure Connect Marketplace Lifted Figure Technology Solutions (FIGR)

Meridian Funds, managed by ArrowMark Partners, released its “Meridian Hedged Equity Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the quarter, the market is more focused on the tailwind of policy easing than the headwind of weakening fundamentals, resulting in substantial gains despite stagflation emerging as a key concern. In this environment, the fund returned 1.67% (net) during the quarter, compared to 8.13% returns of the S&P 500 Index and 3.53% returns of the secondary benchmark, the CBOE S&P 500 BuyWrite Index. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Meridian Hedged Equity Fund highlighted stocks such as Figure Technology Solutions, Inc. (NASDAQ:FIGR). Figure Technology Solutions, Inc. (NASDAQ:FIGR) is a financial technology company that offers blockchain-based products and solutions. The one-month return for Figure Technology Solutions, Inc. (NASDAQ:FIGR) was 32.39%, and its shares gained 12.80% over the last three months. On December 23, 2025, Figure Technology Solutions, Inc. (NASDAQ:FIGR) stock closed at $44.67 per share, with a market capitalization of $9.559 billion.

Meridian Hedged Equity Fund stated the following regarding Figure Technology Solutions, Inc. (NASDAQ:FIGR) in its third quarter 2025 investor letter:

“Figure Technology Solutions, Inc. (NASDAQ:FIGR) is a fintech firm disrupting the consumer lending market through blockchain enabled origination of home equity lines of credit (HELOCs). The company is the leading non-bank lender in this space and holds roughly 75% of the market for tokenized private credit. Its proprietary blockchain platform delivers a significant structural cost and efficiency advantage, reducing loan funding times from an industry average of over 40 days to as few as 10. Performance this quarter benefited from the successful scaling of the Figure Connect marketplace, launched in mid-2024, which has already grown to over $1 billion in loan volume and become a key revenue driver. Growth was fueled by strong adoption among more than 170 origination partners, who are demonstrating high retention and increasing volume, validating the platform’s value proposition. This shift toward a more fee-based model contributed to significant EBITDA margin expansion, highlighting the operating leverage and attractive unit economics of the firm’s scalable platform.”

Figure Technology Solutions, Inc. (NASDAQ:FIGR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 41 hedge fund portfolios held Figure Technology Solutions, Inc. (NASDAQ:FIGR) at the end of the third quarter. In Q3 2025, Figure Technology Solutions, Inc.’s (NASDAQ:FIGR) adjusted net revenue reached $156 million, an increase of 42% from Q3 2024. While we acknowledge the risk and potential of Figure Technology Solutions, Inc. (NASDAQ:FIGR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Figure Technology Solutions, Inc. (NASDAQ:FIGR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Figure Technology Solutions, Inc. (NASDAQ:FIGR) and shared the list of soaring stocks. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.